The Paris Stock Exchange continues to decline, the good publications of companies within the Cac 40 being offset by the relapse of Wall Street on Tuesday. The market remains focused on the risk of a slowdown in the Chinese economy, exposed to the “zero Covid” policy, and the prospect of a tightening of the monetary policy of the American Federal Reserve. Geopolitical tensions have also risen a notch following the announcement by Gazprom of the cessation of its gas deliveries to Poland and Bulgaria, both members of NATO and the European Union. .
At 9:30 a.m., the Bedroom 40 lost 1.10% to 6,343.90 points in a business volume of nearly 400 million euros.
Moscow’s use of the energy weapon raises fears that other European countries could be targeted later after they refuse to pay for their gas imports in rubles. As a result, the euro touched 1.0635 dollars overnight, its lowest level since April 2017, while oil and gas prices are on the rise.
Rebound in Chinese markets
Asian markets continued their decline this morning with the exception of China’s CSI 300, which rebounded 2.9% after ending at a two-year low on Tuesday. President Xi Jinping has announced new infrastructure investment projects to revive an economy hampered by the containment measures that are paralyzing several major cities in the country.
On Wall Street, the Nasdaq Composite dropped nearly 4% yesterday to fall back to its lowest level since November 2020, in a move of defiance towards technology stocks in the face of the more aggressive turn taken by the Fed in terms of monetary policy. Alphabet, the parent company of Google, posted post-closing revenue below expectations for the first time since the outbreak of the pandemic as advertisers cut advertising spending amid worries about the economy. The title fell 3% in aftermarket transactions. Conversely, Microsoft did better than expected, boosted by the growth of its “cloud” division as many companies accelerate the dematerialization of their data with the modification of the way their employees work. The action rose 4.5%.
Numerous confirmations within the Cac 40
Biggest rise in the flagship index, Worldline wins 4%. Payment services specialist reported first-quarter revenue of €939m, up from €841m a year earlier, confirming full-year targets despite war impact in Ukraine.
Dassault Systems increased by 1.5%. The design assistance software maker raised its 2022 targets after seeing its results improve in the first quarter. For the current year, it now forecasts, in non-IFRS data, an operating margin of between 33.4% and 33.7% and net earnings per share of 1.04 to 1.06 euros, an increase of 9% to 11%. He was previously counting on an EPS of 98 cents to 1 euro and on an operating margin of between 32.7% and 33.1%.
STMicroelectronics takes 0.5%. The semiconductor maker has confirmed its revenue forecast for 2022, after posting results above its expectations and analysts’ expectations in the first quarter, despite the persistence of the Covid-19 pandemic in China.
Liquid air yields 0.6%. The industrial gases giant confirmed its outlook for 2022, after seeing its sales grow 29.1% to 6.59 billion euros in the first quarter, due in particular to price increases. According to a consensus provided by the company, analysts on average expected revenue of 6.76 billion euros.
Schneider-Electric down 3.2%. The electrical equipment manufacturer has confirmed its objectives for 2022, after the 15.9% increase to 7.57 billion euros in its turnover in the first quarter and despite a “ uncertain macroeconomic environment “. The FactSet consensus anticipated revenue of 7.33 billion euros.
Michelin takes 1.2%. The tire manufacturer confirmed its operating profit and cash flow targets for 2022 after recording a 19% increase in sales in the first quarter, to 6.5 billion euros. despite a disturbed environment “. According to the consensus established by FactSet, analysts expected an average turnover of 6.16 billion euros last quarter.